Circana: U.S. Toy Sales Decline 1 Percent in Q1, Still 38% Above Pre-Pandemic Levels
The following article is based on a press release issued by Circana on June 6, 2024.
June 6, 2024 | U.S. toy industry sales declined 1 percent from January through April 2024, compared to the same four-month period in 2023, according to Circana. However, toy sales remained 38 percent ahead of 2019, equating to $2 billion.
Adults ages 18 and older contributed more than $1.5 billion in sales in the first quarter alone, overtaking the 3- to 5-year-old segment for the first time. Circana data states that 43 percent of adults purchased a toy for themselves in the past year, with the top reasons being for socialization, enjoyment, and collecting.
Three of the 11 supercategories Circana tracks posted dollar growth in Q1, including building sets, led by LEGO Icons; explorative toys, driven by MGA Entertainment’s Miniverse line; and vehicles, driven by Monster Jam licensed products. Coinciding with seasonal boosts from Valentine’s Day and Easter, building sets, plush, and outdoor & sports toys experienced year over year growth based on units sold.
“We are in a transformative period across retail sectors as consumers navigate high prices and manage their budgets, and while the toy industry is feeling the heat, it is ripe with opportunity,” said Juli Lennett, vice president and toy industry advisor at Circana. “Tailwinds, like the growing adult toy market and spending power of higher income households and grandparents, drive positive trends. However, headwinds like rising household debt, slowing GDP growth, and fluctuating consumer confidence indicate potential challenges. By focusing on innovation and addressing diverse consumer needs, the industry can find the propensity to thrive despite an evolving economic environment.”